You may be asking if you may file a lawsuit against a dissolved LLC if you operate a business in Texas. The short answer is yes, but there are a few crucial elements to take into account before filing a lawsuit.
First and foremost, it’s crucial to comprehend what it implies when an LLC dissolves. An LLC may be dissolved in Texas either voluntarily or forcibly by the state. Dissolution of an LLC signifies the end of the LLC’s existence as a legal entity and the end of its operations.
So, in Texas, is it possible to bring a lawsuit against a dissolved LLC? Yes, but only if the case relates to a dispute that existed prior to the LLC’s dissolution. In other words, you can still bring a lawsuit to recover damages if the LLC owes you money or broke a contract before it was dissolved.
You cannot file a lawsuit against a dissolved LLC, nevertheless, if the claim at issue arose after the LLC was disbanded. It’s crucial to remember that even if you are successful in getting a judgment against a dissolved LLC, you can have trouble getting the money you were awarded in damages.
How Do I Restore My Texas LLC?
The Texas Secretary of State will accept a certificate of reinstatement if your LLC has been voluntarily dissolved. This entails paying the reinstatement charge as well as any unpaid state taxes or fees.
If the state forced the dissolution of your LLC, you can request restoration by submitting a certificate of reinstatement and paying any outstanding fines or taxes. Additionally, you will need to show proof that your LLC is still in good standing with the state. What Does Texas’ Forfeited Existence Mean?
The LLC’s ability to conduct business legally in Texas has been forfeited. When an LLC neglects to submit its annual report or pay its franchise tax, this may occur. The LLC must submit the required paperwork and settle any unpaid fees in order to recover its legal status.
The Texas Secretary of State must receive a certificate of termination if you want to dissolve your LLC there. To do this, the required paperwork must be filled out, and a filing fee must be paid.
Assets from a dissolved LLC are utilized to settle any outstanding commitments or debts. The LLC’s members may be held personally accountable for any outstanding debts if there are insufficient assets to pay off all outstanding obligations.
In Texas, it is feasible to sue a dissolved LLC, but it’s crucial to be aware of the restrictions and probable challenges in recovering damages. It’s crucial to follow the correct steps and make sure that all taxes and fees are paid if you’re thinking about dissolving your LLC or restoring one that has already been disbanded.
An LLC (Limited Liability Company) can be officially closed down and have its legal existence ended by dissolving the company entity. This procedure entails paying off any existing debts and liabilities as well as submitting articles of dissolution to the state where the LLC was created. The residual assets are dispersed among the members in accordance with the LLC’s operating agreement or applicable state legislation once it is dissolved, at which point it is no longer able to do business or engage into contracts.